Company formation in Lithuania

Lithuania offers a highly favorable environment for company formation, boasting a strategic location in the heart of Europe and a business-friendly regulatory framework. The country provides attractive tax incentives, a robust digital infrastructure, and a highly skilled workforce. Its strong economic stability and commitment to innovation make Lithuania an ideal destination for entrepreneurs and investors seeking growth opportunities.

Manimama ensures a seamless company registration process in Lithuania. Trust us to provide expert guidance and support, so your business can thrive from day one in Lithuania. Start your journey with confidence, knowing you have the best team by your side.

Lithuania

Legal Opinion about Lithuania as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama, CEO

"As a legal professional specializing in corporate formation, I consistently recommend Lithuania to my clients. Their streamlined incorporation procedures, favorable tax structures within the EU, and clear legal framework create a stable and beneficial environment for establishing a business. Contact us to set up your company".

Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Company Formation

€2,500

  • Company formation in Lithuania
  • Opening a bank account
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Additional services

€1,000

  • Registered address for 1 year
  • VAT registration
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Documents

€600

  • Apostille corporate documents (Certificate of incorporation and Articles of Association)
  • Document delivery
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Key Numbers about Lithuania as a Jurisdiction for Company Formation

2 weeks

average term of company formation

аt least 1

shareholder in the UAB

аt least 1

director in the UAB

15%

corporate income tax (CIT) rate

20/32%

personal income tax (PIT) rate

21%

value-added tax (VAT) rate

Set up Your Company in Lithuania in Several Steps

Step 1. Initial setup

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Company registration

  • Verification and reservation of the company name at the State Enterprise Centre of Registers
  • Facilitating the notarial process for the company's official registration
  • Opening a bank account in the owner's name and depositing a minimum of 25% of the share capital
  • Incorporating the company's data into the State Enterprise Centre of Registers
  • Obtaining the Certificate of incorporation issued by the State Enterprise Centre of Registers and Articles of Association
  • VAT Registration. If UAB turnover is expected to exceed €45,000 in a 12-month period, the company must register for VAT with the State Tax Inspectorate

Requirements for Company Formation in Lithuania

Before deciding to set up a new company in Lithuania, read the information below to understand the characteristics of a Private Limited Liability Company (PLLC) / Uždaroji Akcinė Bendrovė’ (UAB):

Shareholders: at least one shareholder (can be an individual or a legal entity, resident or non-resident of Lithuania).

Director: at least one director (must be a natural person, can be a shareholder).

Company Secretary: not required.

Minimum Share Capital: €1,000. At least 25% must be paid up before registration.

Legal Address: a registered office address in Lithuania is required.

Liability: shareholders do not carry any responsibility about conducted business activities by the company.

Accounting: UAB is required to keep up-to-date and accurate accounting records, including information about financial transactions, tax obligations, and other related details.

Taxes in Lithuania

Corporate income tax (CIT)

The basic CIT rate is 15%.

The CIT rate of 0% is applied to taxable profits of newly established entities for the first taxable period, then further taxed at a rate of 5% for the following tax periods, when certain requirements are fulfilled:

  • average number of employees does not exceed 10;
  • income during the tax period does not exceed €300,000;
  • shareholders of the entity are only natural persons;
  • economic activity of the entity is not suspended, the entity is not liquidated/reorganized, and the entity shares are not transferred to new shareholders for three consecutive tax periods, including the first tax period.
Personal income tax (PIT)

In 2024, the 20% PIT rate applied to income up to €114,162 per calendar year, with a 32% rate for amounts exceeding this threshold. This includes:

  • employment-related income;
  • payments to members of the Board or Supervisory Board;
  • income derived under copyright agreements from an individual's employer;
  • income under civil agreements received by a manager of a small partnership who is not a member of that partnership.
Value-added tax (VAT)

The standard VAT rate is 21%. It applies to most goods and services, with some exceptions, such as necessities or other specific goods or services for which a reduced rate may be established.

Certain goods and services are eligible for reduced VAT rates:

  • the 9% VAT rate is relevant for goods and services such as home heating and printed materials;
  • the 5% VAT rate is relevant for goods and services such as medicines and medical aid equipment, technical support and maintenance of devices for disabled persons;
  • the 0% VAT rate is relevant for goods and services such as the export of goods, supply, maintenance, repairs, modification, modernization, and hiring out of seagoing vessels used for transportation of passengers or goods on international routes or for other services for reward, of seagoing fishing vessels, and of vessels used for rescue or assistance at sea.

Exempt from VAT:

  • goods and services related to healthcare;
  • welfare services aimed at protecting the rights of minors;
  • education;
  • services related to sports and culture provided by nonprofit legal entities;
  • postal services;
  • radio and television services;
  • insurance and financial services (there may be exceptions);
  • lotteries and gambling;
  • postage stamps;
  • certain services provided by political parties, trade unions or other nonprofit legal entities and independent groups to their members;
  • certain services and goods supplied by religious communities and organizations to their members;
  • sale or transfer of land, except for building purposes or new buildings located on it;
  • leasing of immovable property, except for hotels, motels, camping sites, residential property for a term not exceeding two months, and premises for parking or storage of transport;
  • the sale or transfer of immovable property is eligible for VAT exemptions, but this does not apply to the sale of new buildings.

Double taxation avoidance agreements in Lithuania: Armenia, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Georgia, Germany, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Kazakhstan, Kyrgyz, Korea, Kosovo, Kuwait, Latvia, Liechtenstein, Luxembourg, Macedonia, Malta, Mexico, Moldova, Morocco, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Arab Emirates, United Kingdom of Great Britain and Northern Ireland, USA, Uzbekistan, Turkey, Turkmenistan.

Start Your Company Formation Process with Manimama

There are numerous reasons why Manimama is the leading company formation agent in Lithuania:

Expertise in Lithuanian Regulations

  • 1. Manimama has an in-depth understanding of Lithuania's legal and regulatory framework.
  • 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

Local and International Experience

  • 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
  • 2. Our expertise spans various industries, providing customized solutions for each client.

Efficient and Timely Service

  • 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
  • 2. Our efficient processes minimize delays and get your business up and running quickly.

Client-Centric Approach

  • 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
  • 2. Our dedicated team is always available to address any concerns and provide expert advice.

Robust Network of Local Partners

  • 1. We have established strong relationships with local authorities, banks, and service providers.
  • 2. This network ensures that your business receives the best possible support and resources.

Ongoing Compliance Support

  • 1. We provide continuous support to ensure your business remains compliant with Lithuanian laws.
  • 2. Our team keeps you updated on any regulatory changes that may impact your company.

Frequently Asked Questions

  • What are the benefits of company formation in Lithuania?
    Forming a company in Lithuania offers numerous advantages, including a favorable tax environment, access to the EU market, and supportive business regulations. Additionally, Lithuania provides a robust digital infrastructure and a skilled workforce.
  • How long does it take to register a company in Lithuania?
    The process of registering a company in Lithuania typically takes on average 2 weeks, depending on the completeness of the required documentation and the type of company being formed.
  • What types of companies can be registered in Lithuania?
    In Lithuania, you can register various types of companies such as private limited liability companies (UAB), public limited companies (AB), and small partnerships (MB).
  • What is the minimum share capital required for company formation in Lithuania?
    For a private limited company (UAB), the minimum share capital required is € 1,000.
  • Do I need a local director to register a UAB in Lithuania?
    Yes, Lithuanian law requires at least one director who must be a natural person and can be a shareholder.
  • What are the tax rates for companies in Lithuania?
    The CIT rate in Lithuania is 15%. However, small companies and startups may benefit from a reduced rate of 5% under certain conditions.
  • Are there any residency requirements for shareholders of a Lithuanian company?
    No, there are no residency requirements for shareholders of a Lithuanian company. Shareholders can be residents or non-residents of Lithuania.

Client Feedbacks

"I loved how Manimama put our business needs first. Their client-focused approach made the whole process feel collaborative".

"Manimama was efficient and avoided unnecessary costs. I was impressed by their commitment to value".

"We needed help in a complex area of getting a cryptocurrency license. Manimama had the expertise to guide us confidently".

Manimama as the Best Solution for Your Company Formation in Lithuania

Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

Comprehensive Legal Expertise
Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

Results-Driven Approach
Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

Global Presence and Local Expertise
Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

Community Commitment
At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

By choosing our company formation service in Lithuania, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Lithuania and pave the way for your business success.

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.